Getting the best return on the employee benefit dollar

The value of employee benefits depends largely on employees' perceptions of those benefits, rather than on any intrinsic value the benefits have. If employees do not value a benefit highly, the hospital is not getting its money's worth. Hospital management now faces the challenge of reallocating benefit dollars to best meet employees' perceived needs and have the maximum positive impact on employee morale, while holding the line on benefit costs. To meet this challenge, administrators must first determine which benefits employees value the most, with which benefits they are most satisfied, and whether an employee's job category makes a difference. Parkside Associates, Inc., the hospital survey corporation of the Lutheran General Health Care System, Park Ridge, IL, has developed a system for gathering hospital-specific benefit data as part of an employee attitude survey. Employees rate each of their benefits according to (1) the benefit's importance to them and (2) their level of satisfaction with the benefit. Based on the assessment of employees' perceptions of the value and quality of benefits they receive, management can plan one or more strategies for response. For example, hospitals can: 1. Reduce benefits a majority of employees identify as having little importance. 2. Restructure benefits identified as being very important, but which produce little satisfaction. 3. Offer flexible, or "cafeteria," benefit plans so individual employees can increase the level of the benefits they value most and decrease the level of other benefits. 4. Offer educational activities, such as an annual benefits statement, to heighten the employees' awareness of the value of the benefits they are receiving.